Birmingham: A small, but elegant part of a £250m Go Develop partner funding pie

19th September 2017

“The delivery of a quality product on time and under budget are the main measures of success in any development project.” The view of one of our experienced developer clients based in the Midlands.

Like so many SME developers, he has the ambition and experience to grow his business, however he was frustrated with funders chopping and changing terms and his broker was struggling to find flexibility in the market and was charging horrendous fees for doing it. If your project doesn’t fit the set criteria, there’s no way forward – or so it seemed.

Thankfully, help was at hand as our developer explains, “Go Develop offer a one stop property development funding solution, with a straight talking joint venture partnership, where actions speak louder than words and with people that are great to deal with and who simply ‘get’ new build!”

Go Develop offer 100% full funding certainty to developers in an increasingly uncertain world covering everything from land and build to stamp duty and soft costs – no fees or deductions. Developers have absolutely no outlay – not a penny, and there are no set spreadsheets or ‘computer says’ mentality. Instead, you deal with real people who are easy to do business with, and as we’re a principal funder, investing our own money nationwide, we can and are known for being flexible for the right opportunities and making things happen; fast.

Our Midlands new build partner was impressed with our long housebuilding track record and came with a project of 21 new homes and 4 apartments in Birmingham. It involves replacing a dilapidated old pub located close to several colleges and the University of Birmingham. Planning permission has been granted, and Go Develop’s 100% funding of £3,358,940 provided.

A new Go Develop ‘SPV’ was set up the same day, to hold the project until it’s finished and sold, with a profit share contract for both parties. On completion and sale of the property the profit is divided. It’s due to be completed in one year’s time with a super charged profit for our partner and it’s currently ahead of schedule.

The best bit? Go Develop, not the developer, burn the midnight oil and do all the admin, VAT returns, valuations and chasing of solicitors and surveyors.

92% of developers return to Go Develop and our Midlands developer now has 3 further projects with us. This includes two based in West Bromwich and the Jewellery Quarter which together will result in the development of over 160 flats. As our Midlands developer partner says, “I work only with the best people in order to deliver an exceptional project every time.”

We love making things easy for our partners, and keep our criteria simple, with a focus on experienced new build developers and a target GDV of £2-15m. A project is swiftly appraised and a profit share agreed, usually with our developer partners keeping the lion’s share of profits, and allowing them to expand their operations over multiple sites. Similarly, we like to reward our relationships with our brokers and introducers offering the highest procurement fees in the industry.

Go Develop can issue binding terms within 48 hours and indeed in some cases have completed a purchase within six working days, although 30 days is more typical. We release development funds, without any deductions and pay the full 100% often within 24 hours. It cuts through the delays and constraints developers can often experience with traditional lenders.

Go Develop currently have over 1,000 units under construction and plan to reach £250m partner funding in the next 18 months. We are currently well ahead of target. Take a look at some of our other case studies on our website and ask our development partners for a reference on us. Our reputation is our currency – ask them and join us.